STATEN ISLAND, N.Y. -- A measure that would allow college graduates -- now mired in more than $1 trillion of education debt -- to refinance their federal student loans at a lower rate will be introduced by U.S. Sen. Kirsten Gillibrand.

In New York state alone, college graduates are weighed down by a combined estimated $60 billion in student loan debt, Ms. Gillibrand said, with students on average owing $27,310, according to the Federal Reserve Bank of New York.

"While a higher education remains the clearest path into the middle class, more of our graduates and middle-class families are burdened by student loans than ever before and are struggling to repay a higher amount of debt than ever before," Ms. Gillibrand (D-N.Y.) said Tuesday.

"This high amount of student debt is dragging down our economy, stopping graduates from buying homes and cars or starting businesses and families."

In New York City, an estimated 11.5 percent of student loan holders have balances more than 90 days delinquent, the senator's office said. And 1.46 million city residents, ages 18-34, or 64 percent, have some post-high school education loan hanging over their heads.

Ms. Gillibrand's proposal to permit graduates to refinance their loans at a lower interest rate was included in the Bank on Students Emergency Loan Refinancing Act introduced by U.S. Sen. Elizabeth Warren (D-Mass.) last week.

Ms. Gillibrand said many graduates have interest rates of nearly 7 percent for their undergraduate loans. However, students taking out new undergraduate loans pay a rate of 3.86 percent under the Bipartisan Student Loan Certainty Act, passed by Congress last summer.

Her legislation would give graduates a six-month window to reduce their rates on all federally-owned student loans.

She noted homeowners and businesses refinance their loans daily.

"This will help to strengthen our middle-class families instead of forcing us deeper into debt," said Ms. Gillibrand. "When we price young people out of a college education, we all pay a price."